Tokenized Equities, Kamino RWAs and zachXBT Investigation

Tokenized equities have surged to approximately $250 million in Total Value Locked (TVL), marking a significant rise from near zero in mid-2025. This growth positions tokenized equities as a major player, accounting for about a quarter of the total TVL across all chains, second only to Ethereum. Their appeal lies in providing access to equities for individuals unable to utilize traditional brokerages. Key players include SuperState, which offers canonical shares, and firms like Ondo and X-Stalks, though challenges remain regarding buybacks, dividends, and voting rights for on-chain equity holders.

In the broader market, Solana's risk value has decreased despite a brief uptick in January, with priority fees now making up 64% of the total RV market share. While Bitcoin and Ethereum ETFs have faced consecutive outflows for four months, Solana has seen consistent inflows, indicating a shift in investor behavior. Institutional investors are accumulating BTC, while older investors may be selling around the $100,000 mark, suggesting a potential change in market dynamics.

The tokenized volume for commodities and equities has reached an all-time high, with significant contributions from pre-IPO stocks like OpenAI and Anthropic. X-Stocks dominate decentralized exchange volumes, benefiting from early market adoption, while other issuers like SuperState face challenges due to stringent KYC requirements. Notable integrations, such as Kamino's release of markets for X-Stocks and SuperState, are enhancing user engagement.

The podcast discusses the growing use cases for trading platforms, particularly focusing on tokenized equities and the pre-stock market. Concerns about volatility and liquidity challenges in the pre-stock perpetual contract market are raised, especially for speculative trading on assets like OpenAI, which are less accessible to retail investors.

Carlos discusses Kamino's recent developments in Real World Assets (RWAs), noting the emergence of eight RWA markets and over $1 billion in deposits. The largest market, Figure Prime, offers exposure to yield from private credit backed by tokenized assets, indicating a shift towards uncorrelated yield sources. Current market dynamics show that RWAs now account for 35% of Kamino's total market, with borrows exceeding $400 million, primarily in stablecoins.

The conversation shifts to the impact of the collapsing basis trade on Athena's dominance, leading to wrapped stablecoins seeking external yield sources. Limited borrow-side activity in X-stocks and the risks associated with non-24/7 trading are noted, with traditional providers beginning to offer 24/7 trading to enhance borrow-side activity.

The speakers agree on a better product market fit for looping strategies in money markets than for directional leveraged exposure. They highlight that while X-stocks markets on Kamino are designed for leveraged exposure, perpetual contracts are currently fulfilling this need, resulting in less activity on the borrow side. The discussion concludes with observations on on-chain treasury yields and tokenized basis trades as significant focal points in the evolving landscape of trading and investment opportunities.

Carlos suggests that individual assets may be better suited for short-term speculative purposes. He highlights Kamino's architecture, introducing two structured products: Multiply, which enables leveraged yield exposure with a single click, and a lesser-known spot leverage product for directional bets at a lower cost than perpetual contracts.

The podcast also addresses an investigation by Zach XBT into insider trading at Axiom, where a BD employee allegedly exploited user account information to trade based on insights from connected addresses. Axiom's prompt response indicates they are investigating and severing ties with the implicated individual. Despite these concerns, Axiom's user account balances and trading volume remain stable.

Danny reflects on the youth and inexperience prevalent in crypto teams, suggesting that rapid growth can lead to ethical oversights. The insider trading incident, while not significantly impacting data, could deter users from Axiom. The discussion notes that this isn't Axiom's first controversy, referencing a previous issue regarding overcharging users on priority fees. Despite these controversies, users appear indifferent, likely due to the product's high value.

The conversation touches on user behavior, indicating that typical users may not prioritize saving money and tend to stick with familiar platforms. Users with lower balances may find small fees more impactful over time, while those expecting significant returns may overlook cumulative fees. The podcast concludes with acknowledgment of Toma's first appearance and anticipation of future discussions.